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FCC NOMINEES (DON’T) SHARE OPINIONS ON C-BLOCK SITUATION

What impact will the four nominees to the Federal Communications Commission have on a wireless industry struggling with a myriad of issues whose resolution will help determine its place in the new telecom paradigm?

During Senate confirmation hearings on Sept. 30 and Oct. 1, FCC chairman-designate Bill Kennard and commissioner nominees Gloria Tristani, Michael Powell and Harold Furchtgott-Roth gave some indications of where they might be headed on various issues.

Follow-up questions by senators and replies by FCC nominees provide a tad more insight into their policy preferences.

But here, too, answers must be seen for what they are: uncultivated views marbled with sage, measured advice from inside-the-Beltway handlers.

Nevertheless, the written responses are part of the record and future actions of the FCC nominees (who are expected to be confirmed shortly) will be measured against what they say today.

Here’s where the future commissioners stand (and don’t stand) on the C-block personal communications service debt fiasco:

Kennard

“Had I been the decision maker, I would have advocated conducting the C-block auction before the A and B blocks. Particularly, with the benefit of hindsight, it appears that delays in conducting the C-block auction, which was designed for smaller, entrepreneurial companies, placed these companies at a competitive disadvantage vis-a-vis the A- and B-block bidders.

“Had the commission conducted the C-block auction first, C-block bidders would have had access to more financing and greater certainty in the financial marketplace. I also would have designed a less generous installment payment package for all C-block bidders.

“I also would have designed more restrictive affiliation rules, which would have provided the smaller bidders with more meaningful bidding incentives.

Tristani

“I am not familiar with the details of the C-block case and because, if I am confirmed, I will be voting on any reconsideration petitions filed, I do not believe it is appropriate for me to comment at this time.

“However, I am committed to the statutory goal of ensuring that small businesses have opportunities to participate in spectrum auctions.”

Powell

“Any resolution must be instituted quickly in order to preserve the value of the licenses and allow timely buildout … Any solution must preserve the integrity of the auctioning process … The solution should offer incentives to financially troubled bidders to avoid tying up licenses in bankruptcy, without being unduly unfair to either financially sound successful bidders or those who were unsuccessful.

“I also agree that the cost of C-block licensees’ capital is one of the many factors that should be included in the decision-making calculus.”

Furchtgott-Roth

“Given that … the FCC will be asked to reconsider its decision in the near future, I would prefer to have the opportunity to review the record in this proceeding before rending a judgment.”

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